Iran Applies for $5 Billion Loan from IMF to Battle Coronavirus

The Governor of the Central Bank of Iran said he has asked the International Monetary Fund for a $5 billion loan that would help the country deal with the outbreak of COVID-19, saying the IMF’s response will be a litmus test for claims about relief aid for containing the disease.

In a post on his Instagram account, Abdolnaser Hemmati said the application for the loan has been made after IMF Managing Director Kristalina Georgieva officially announced that the international community has asked the International Monetary Fund to use its financial tools to help the countries affected by the novel coronavirus and to make available $50 billion through its rapid-disbursing emergency financing facilities to help address COVID-19.

She has also said that nobody should die due to a lack of financial resources or medical supplies, Hemmati noted, adding that he wrote a letter to Georgieva on March 6 to exercise Iran’s right.

“I have declared that, according to your (IMF’s) proclamation about supporting the Member States, including Iran, and considering the widespread outbreak of the coronavirus in our country and the necessity for vigorously continuing the measures to prevent and cure the disease and address its economic impacts, we ask for around $5 billion from rapid-disbursing emergency financing, considering the Islamic Republic of Iran’s quota in the fund,” the CBI chief said.

He stressed that the international community and the IMF’s response to Iran’s request would be a good litmus test for their claims about support to control the coronavirus and relieve the pains of the affected people.

“I hope the International Monetary Fund would rapidly fulfill its responsibilities within its duties,” Hemmati went on to say.

He also underlined that in the meantime, the Central Bank of Iran, like in the past, is employing all means at its disposal to support the Iranian people and overcome the problems.